Weekly Economic Update (12 August 2022 to 18 August 2022)
1. Facilities tightened for foreign currency exchange: Nepal Rastra Bank (NRB) has made it compulsory for Banks and Financial Institutions (BFIs) to formulate work procedures to control money laundering for imports and exports. This rule was implemented through an integrated directives issue on August 16.
2. Daily limit of money remitted increases: Nepal Rastra Bank (NRB) has increased the daily limit of money remitted from abroad from NPR 1 million to NPR 1.5 million. This increase only applies to the money sent through authorized remittance companies.
3. Alternatives to NIA construction to be studied: The government has formed a nine-member experts team, as ordered by the Supreme Court, to conduct a new feasibility study for the new possible locations of Nijgadh International Airport (NIA).
4. SSF issues home loan of up to NPR 7 million: The Social Security Fund (SSF) is providing its contributors up to 80% of their deposited amount as an advance under its special borrowing scheme. The scheme is only applicable to employees who have been contributing for at least 3 years.
(Source: https://myrepublica.nagariknetwork.com/news/ssf-starts-issuing-home-loan-of-up-to-rs-7-million/)
5. World Bank provides NPR 12.7 billion DPC to Nepal: The government has accepted NPR 12.7 billion development policy credit (DPC) from the World Bank to support green and climate-resilient development in Nepal. According to the World Bank, DPC is used to enable sustainable reduction of poverty through policies and institutional actions.
6. Remittance inflow increased by 4.8%: According to the Current Macroeconomic and Financial Situation of Nepal (based on Annual data of 2021/22), remittance inflow has increased by 4.8% to NPR 1,007.31 billion in FY 2021/22. Last year, remittance inflows had increased by 9.8%.
(Source: https://myrepublica.nagariknetwork.com/news/remittances-inflow-crosses-rs-10-billion-in-fy-2078-079/)
7. Expert Advisor to Finance Minister appointed: Dr. Shalik Ram Pokhrel, Deputy Director of Nepal Rastra Bank (NRB), has been selected as an expert advisor in the banking and financial sector to the current Finance Minister Janardan Sharma.
8. China-Nepal main borders closed: China has banned transportation of goods from the Tatopani and Rasuwagadhi borders of Nepal unannounced, citing the rise in COVID-19 transmission in Tibet as the reason. This has affected the trade of goods for the upcoming festival season.
(Source: https://myrepublica.nagariknetwork.com/news/china-closes-both-main-border-crossings-with-nepal/)
9. DoC announces new ban: The Department of Cooperatives (DoC) has introduced a new ban that prevents cooperatives from issuing loans to real estate businesses. This was implemented due to the liquidity crisis and many cooperatives having problems with realty businesses.
10. Task Force formed to contain loan-sharking: A six-member task force led by Joint Secretary at the Ministry of Home Affairs has been formed for the containment of loan sharking. The task force members will visit districts reporting loan sharking incidents to examine the causes and possible solutions and submit a report within a week.
(Source: https://myrepublica.nagariknetwork.com/news/government-forms-task-force-to-contain-loan-sharking/)
